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Invoicing

Line Item

The short answer

A line item is one row on a quote or invoice. It holds one piece of work or material, with its quantity, unit price, and total. Line items let a client check the bill against what they agreed.

What it means

“Labor, $850” is a total. A client cannot check it. Break it down into 6 hours at $95/hr, plus materials at cost, plus a call-out fee. The same total now has a paper trail. The client or their accountant can follow it without emailing you to ask what it covers.

Line items also make change orders easy. Add one new row for the extra work and leave the rest of the document alone. A quote’s line items should carry straight over onto the invoice. So if you itemize properly at the quote stage, nothing needs retyping once the client says yes.

For example

One line reads “Bathroom repair, $620.” An itemized invoice shows this instead: Labor, 5 hrs @ $85/hr, $425. Materials (sealant, tile, grout), $145. Call-out fee, $50. The total is the same, and the client can see exactly what it is made of.

The mistake to avoid

Lumping labor and materials into one line to save time writing the quote. Clients question that line first when the total looks higher than they expected.

See also

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